Oregon to issue $518 million in bonds for projects
The state of Oregon is preparing one of the largest bond sales of the 2017-19 biennium, which will expand the state’s affordable housing inventory, improve schools and public facilities, and create a wave of construction work statewide, State Treasurer Tobias Read announced late last week.
In total, $518 million in general obligation bonds will be sold to buyers this week, with the proceeds paying for projects approved by lawmakers in 2017 and 2018. Individual Oregonians can be first in line to invest in the bonds through the Buy Oregon Bonds program.
“Across Oregon, these bonds will contribute to a better quality of life for working families, students, and military personnel and veterans – while also creating construction jobs and economic momentum,” Read said.
The issuance includes $40 million of Oregon Sustainability Bonds, which provides money for affordable housing projects, $100 million for matching funds for schools for capital projects, and $77 million for seismic retrofitting of schools and public buildings.
The bonds finance construction at veterans’ homes, universities, better technology to help ensure child support is collected, and the next phase of the new Multnomah County Courthouse in Portland.
The state Treasury manages State of Oregon debt to ensure it is used wisely, and protects the state’s credit ratings and makes its bonds more appealing to buyers. Fitch Ratings, Moody’s Investors Service and S&P Global Ratings have assigned municipal bond ratings of AA+, Aa1, and AA+, respectively, to general obligation bonds of the State of Oregon.
Oregon’s capacity for debt that is repaid from the General Fund is recommended each year by the State Debt Policy Advisory Commission, which is chaired by the Treasurer. This month’s sale accounts for about half of the General Obligation debt capacity for the biennium that ends June 30.
Part of the priority for state indebtedness is addressing deferred maintenance for existing state facilities, which is typically cost-effective, compared to new buildings.
Projects on the list include a boiler replacement at Southern Oregon University in Ashland, renovations at Eastern Oregon University in La Grande and Oregon State University in Corvallis, projects at Department of Fish and Wildlife facilities, and upgrades to the Grants Pass Armory.
For more information about the bond including a list of participating brokers and the breakdown of agencies that will distribute the bond proceeds, please see: https://www.oregon.gov/treasury/oregon-bonds/pages/bond-calendar.aspx .
